Royal Caribbean Cruise Lines 2013 Annual Report Download - page 23
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PART I
Our brands, including our 50% joint venture, TUI Cruises, have six ships on order. Three ships on order are being
built in Germany by Meyer Werft GmbH, two are being built in Finland by STX Finland and one will be built in
France by STX France. The expected dates that our ships on order will enter service and their approximate berths
are as follows:
Ship
Expected to
Enter Service
Approximate
Berths
Royal Caribbean International—
Quantum-class:
Quantum of the Seas thQuarter
Anthem of the Seas ndQuarter
Unnamed ndQuarter
Oasis-class:
Unnamed ndQuarter
TUI Cruises—
Mein Schiff 3 ndQuarter
Mein Schiff 4 ndQuarter
Total Berths
Seasonality
Our revenues are seasonal based on the demand for cruises. Demand is strongest for cruises during the Northern
Hemisphere’s summer months and holidays. In order to mitigate the impact of the winter weather in the Northern
Hemisphere and to capitalize on the summer season in the Southern Hemisphere, our brands have focused on
deployment in Australia and Latin America during that period.
Passengers and Capacity
Selected statistical information is shown in the following table (see Description of Certain Line Items and Selected
Operational and Financial Metrics under Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations, for definitions):
Year Ended December 31,
Passengers Carried
Passenger Cruise Days
Available Passenger Cruise Days (APCD)
Occupancy
Cruise Pricing
Our cruise ticket prices include accommodations and
a wide variety of activities and amenities, including
meals and entertainment. Prices vary depending on
many factors including the destination, cruise length,
stateroom category selected and the time of year the
cruise takes place. Although we grant credit terms in
select markets mainly outside of the United States, our
payment terms generally require an upfront deposit
to confirm a reservation, with the balance due prior to
the sailing. During the selling period of a cruise, we
continually monitor and adjust our cruise ticket prices
for available guest staterooms based on demand, with
the objective of maximizing net yields. In 2013, we
launched new initiatives, which enable us to set pric-
ing and leverage enhancements for the web and our
reservation systems. During 2014, we will continue to
develop and implement revenue management tools
that we believe will enable us to better understand
and react to the current demand and pricing environ-
ment. Historically, we have opened cruises for sale at
least one year in advance and often as much as two
years in advance. Our air transportation program is
available in major cities around the world and prices
vary by gateway and destination. Generally, air tickets
are sold to guests at prices close to cost.
Passenger ticket revenues accounted for approximately
72% of total revenues in 2013 and approximately 73%
of total revenues in 2012 and 2011. While none of our
brands are currently charging fuel supplements, we
have introduced temporary fuel supplements from
time to time.
Onboard Activities and Other Revenues
Our cruise brands offer modern fleets with a wide
array of onboard services, amenities and activities
which vary by brand and ship. While many onboard
activities are included in the base price of a cruise, we
realize additional revenues from, among other things,
gaming, the sale of alcoholic and other beverages,
gift shop items, shore excursions, photography, spa/
salon and fitness services, art auctions, catalogue gifts
for guests and a wide variety of specialty restaurants
and dining options. Royal Caribbean International,
Celebrity Cruises and Azamara Club Cruises offer
functionality on their respective internet sites for
selecting shore excursions, specialty dining and ame-
nities prior to embarkation.